The Role of the Creative Economy in Improving Local Competitiveness: Case Study of Creative Cities in Indonesia
##plugins.themes.bootstrap3.article.main##
Abstract
The creative economy has become one of the main drivers of economic growth in various cities in Indonesia. This study aims to analyse the role of the creative economy sector in improving local competitiveness, focusing on creative cities in Indonesia. Through a systematic literature review (SLR) approach using the PRISMA method, this article evaluates research results from various academic sources and relevant reports. The study results show that creative cities can increase local competitiveness by encouraging innovation, cross-sector collaboration, and the creation of more sustainable job opportunities. The creative economy also strengthens local cultural identity, which is a selling point in the global market. However, challenges remain, including more digital infrastructure and adequate regulatory support. This article concludes that synergy between the government, the private sector, and the creative community is urgently needed to strengthen the creative economy ecosystem. The results of this study are expected to be the foundation for policymakers and creative industry players in designing more effective strategies to increase local competitiveness.
##plugins.themes.bootstrap3.article.details##
Ahad, M. A., Paiva, S., Tripathi, G., & Feroz, N. (2020). Enabling technologies and sustainable smart cities. Sustainable Cities and Society, 61, 102301. https://doi.org/10.1016/j.scs.2020.102301
Alcaide Muñoz, L., & Rodríguez Bolívar, M. P. (2021). Different Levels of Smart and Sustainable Cities Construction Using e-Participation Tools in European and Central Asian Countries. Sustainability, 13(6), 3561. https://doi.org/10.3390/su13063561
Anas, T., Hill, H., Narjoko, D., & Putra, C. T. (2022). The Indonesian Economy in Turbulent Times. Bulletin of Indonesian Economic Studies, 58(3), 241–271. https://doi.org/10.1080/00074918.2022.2133344
Ardern, C. L., Büttner, F., Andrade, R., Weir, A., Ashe, M. C., Holden, S., Impellizzeri, F. M., Delahunt, E., Dijkstra, H. P., Mathieson, S., Rathleff, M. S., Reurink, G., Sherrington, C., Stamatakis, E., Vicenzino, B., Whittaker, J. L., Wright, A. A., Clarke, M., Moher, D., … Winters, M. (2022). Implementing the 27 PRISMA 2020 Statement items for systematic reviews in the sport and exercise medicine, musculoskeletal rehabilitation and sports science fields: the PERSiST (implementing Prisma in Exercise, Rehabilitation, Sport medicine and SporTs sc. British Journal of Sports Medicine, 56(4), 175–195. https://doi.org/10.1136/bjsports-2021-103987
Arifin, B., Wicaksono, E., Tenrini, R. H., Wardhana, I. W., Setiawan, H., Damayanty, S. A., Solikin, A., Suhendra, M., Saputra, A. H., Ariutama, G. A., Djunedi, P., Rahman, A. B., & Handoko, R. (2020). Village fund, village-owned enterprises, and employment: Evidence from Indonesia. Journal of Rural Studies, 79, 382–394. https://doi.org/10.1016/j.jrurstud.2020.08.052
Bahasoan, A. N., Anwar, A. I., Lekas, M. N. J., & Asryad, R. (2024). Otonomi Daerah dan Pertumbuhan Ekonomi di Indonesia: Literature Review. Ekonomis: Journal of Economics and Business, 8(1), 43. https://doi.org/10.33087/ekonomis.v8i1.1119
Balfaqih, M., & Alharbi, S. A. (2022). Associated Information and Communication Technologies Challenges of Smart City Development. Sustainability, 14(23), 16240. https://doi.org/10.3390/su142316240
Bucea-Manea-Țoniş, R., Šević, A., Ilić, M. P., Bucea-Manea-Țoniş, R., Popović Šević, N., & Mihoreanu, L. (2021). Untapped Aspects of Innovation and Competition within a European Resilient Circular Economy. A Dual Comparative Study. Sustainability, 13(15), 8290. https://doi.org/10.3390/su13158290
Camboim, G. F., Zawislak, P. A., & Pufal, N. A. (2019). Driving elements to make cities smarter: Evidence from European projects. Technological Forecasting and Social Change, 142, 154–167. https://doi.org/10.1016/j.techfore.2018.09.014
Cavalcante, A. M., Marquezini, M. V., Mendes, L., & Moreno, C. S. (2021). 5G for Remote Areas: Challenges, Opportunities and Business Modeling for Brazil. IEEE Access, 9, 10829–10843. https://doi.org/10.1109/ACCESS.2021.3050742
Chakraborty, T., Chauhan, S. S., & Ouhimmou, M. (2019). Cost-sharing mechanism for product quality improvement in a supply chain under competition. International Journal of Production Economics, 208, 566–587. https://doi.org/10.1016/j.ijpe.2018.12.015
Chan, H. M. H., & Cho, V. W. S. (2022). An Empirical Study: The Impact of Collaborative Communications on New Product Creativity That Contributes to New Product Performance. Sustainability, 14(8), 4626. https://doi.org/10.3390/su14084626
Chen, C.-L., Lin, Y.-C., Chen, W.-H., Chao, C.-F., & Pandia, H. (2021). Role of Government to Enhance Digital Transformation in Small Service Business. Sustainability, 13(3), 1028. https://doi.org/10.3390/su13031028
Chou, M.-H., Erkkilä, T., & Mölsä, J. (2024). Crafting innovation hubs: Future cities and global challenges. The British Journal of Politics and International Relations, 26(3), 694–717. https://doi.org/10.1177/13691481231191921
Colombari, R., & Neirotti, P. (2022). Closing the middle-skills gap widened by digitalisation: how technical universities can contribute through Challenge-Based Learning. Studies in Higher Education, 47(8), 1585–1600. https://doi.org/10.1080/03075079.2021.1946029
Cunningham, S., & McCutcheon, M. (2023). Rearticulating the creative industries-STEM relationship: the case of innovation precincts in South Australia. Creative Industries Journal, 16(1), 22–41. https://doi.org/10.1080/17510694.2021.1959087
Darwis, V., Rachmawati, R. R., Muslim, C., Chanifah, Sembiring, A., Ilham, N., Mufidah, L., Suhartini, S. H., Basuki, R. S., Rina, Y., Suharyon, Nurdin, M., Dahya, Damanik, M., & Dewi, D. O. (2023). Transformation of financial institutions grants from the government to inclusive financial institutions in Indonesia. PLOS ONE, 18(6), e0286482. https://doi.org/10.1371/journal.pone.0286482
Dolezal, C., & Novelli, M. (2022). Power in community-based tourism: empowerment and partnership in Bali. Journal of Sustainable Tourism, 30(10), 2352–2370. https://doi.org/10.1080/09669582.2020.1838527
Ekomadyo, A. S., Wijaya, N., Vardhani, V. J., Maulana, A. T., Suhendar, H., & Susanto, V. (2023). FIELD OF CREATIVE CULTURE: A STUDY OF CREATIVE MOVEMENT AND INNOVATION OF TERRACOTTA CULTURE IN JATIWANGI, INDONESIA. Creativity Studies, 16(1), 355–370. https://doi.org/10.3846/cs.2023.15333
El-Ferik, S., & Al-Naser, M. (2021). University-Industry Collaboration: A Promising Trilateral Co-Innovation Approach. IEEE Access, 9, 112761–112769. https://doi.org/10.1109/ACCESS.2021.3104096
Escalona-Orcao, A., Barrado-Timón, D. A., Escolano-Utrilla, S., Sánchez-Valverde, B., Navarro-Pérez, M., Pinillos-García, M., & Sáez-Pérez, L. A. (2020). Cultural and Creative Ecosystems in Medium-Sized Cities: Evolution in Times of Economic Crisis and Pandemic. Sustainability, 13(1), 49. https://doi.org/10.3390/su13010049
Faraone, C. (2022). Territorial Challenges for Cultural and Creative Industries’ Contribution to Sustainable Innovation: Evidence from the Interreg Ita-Slo Project DIVA. Sustainability, 14(18), 11271. https://doi.org/10.3390/su141811271
Gallagher, B. K., & Ehlman, M. P. (2019). Arts at the Intersection: Cross-Sector Collaboration and Creative Placemaking in Rapid City, SD. Public Performance & Management Review, 42(6), 1333–1350. https://doi.org/10.1080/15309576.2019.1601113
Gerlitz, L., & Prause, G. K. (2021). Cultural and Creative Industries as Innovation and Sustainable Transition Brokers in the Baltic Sea Region: A Strong Tribute to Sustainable Macro-Regional Development. Sustainability, 13(17), 9742. https://doi.org/10.3390/su13179742
Gruber, H. (2019). Proposals for a digital industrial policy for Europe. Telecommunications Policy, 43(2), 116–127. https://doi.org/10.1016/j.telpol.2018.06.003
Guerrero, J. E., & Hansen, E. (2021). Company-level cross-sector collaborations in transition to the bioeconomy: A multi-case study. Forest Policy and Economics, 123, 102355. https://doi.org/10.1016/j.forpol.2020.102355
Gunawan, A. S., & Cahayani, A. (2021). Do Demographic Variables Make a Difference in Entrepreneurial Leadership Style? International Journal of Asian Business and Information Management, 13(2), 1–6. https://doi.org/10.4018/IJABIM.20220701.oa10
Harris Purnama, S. I. K. K. B. B. (2022). Small and Medium Enterprises Business Model in Indonesia. Journal of Economics and Business, 5(3). https://doi.org/10.31014/aior.1992.05.03.444
Hou, P., Pun, H., & Li, B. (2022). To Collaborate or Not: Product Upgrading Strategy in a Competitive Duopoly Market. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 52(5), 3210–3223. https://doi.org/10.1109/TSMC.2021.3061817
Iatrellis, O., Panagiotakopoulos, T., Gerogiannis, V. C., Fitsilis, P., & Kameas, A. (2021). Cloud computing and semantic web technologies for ubiquitous management of smart cities-related competencies. Education and Information Technologies, 26(2), 2143–2164. https://doi.org/10.1007/s10639-020-10351-9
Ishiguro, M. A. (2022). Dance as Cultural Practice vs. Religious Piety: Acehnese Dance in Banda Aceh and Yogyakarta. Dance Research Journal, 54(3), 68–90. https://doi.org/10.1017/S0149767722000274
Janssen, M., Luthra, S., Mangla, S., Rana, N. P., & Dwivedi, Y. K. (2019). Challenges for adopting and implementing IoT in smart cities. Internet Research, 29(6), 1589–1616. https://doi.org/10.1108/INTR-06-2018-0252
Jiang, Y., & Zheng, W. (2021). Coupling mechanism of green building industry innovation ecosystem based on blockchain smart city. Journal of Cleaner Production, 307, 126766. https://doi.org/10.1016/j.jclepro.2021.126766
Jimenez-Jimenez, D., Martínez-Costa, M., & Sanchez Rodriguez, C. (2019). The mediating role of supply chain collaboration on the relationship between information technology and innovation. Journal of Knowledge Management, 23(3), 548–567. https://doi.org/10.1108/JKM-01-2018-0019
Jo, S.-S., Han, H., Leem, Y., & Lee, S.-H. (2021). Sustainable Smart Cities and Industrial Ecosystem: Structural and Relational Changes of the Smart City Industries in Korea. Sustainability, 13(17), 9917. https://doi.org/10.3390/su13179917
Jordan, J., Dasgupta, R. K., & Hitchen, G. (2023). Mapping innovation in India’s creative industries: an ecosystem framework. Cultural Trends, 32(4), 416–428. https://doi.org/10.1080/09548963.2023.2217416
Kaya, B., Abubakar, A. M., Behravesh, E., Yildiz, H., & Mert, I. S. (2020). Antecedents of innovative performance: Findings from PLS-SEM and fuzzy sets (fsQCA). Journal of Business Research, 114, 278–289. https://doi.org/10.1016/j.jbusres.2020.04.016
Klein, M., & Spychalska-Wojtkiewicz, M. (2020). Cross-Sector Partnerships for Innovation and Growth: Can Creative Industries Support Traditional Sector Innovations? Sustainability, 12(23), 10122. https://doi.org/10.3390/su122310122
Kong, X., Liu, X., Jedari, B., Li, M., Wan, L., & Xia, F. (2019). Mobile Crowdsourcing in Smart Cities: Technologies, Applications, and Future Challenges. IEEE Internet of Things Journal, 6(5), 8095–8113. https://doi.org/10.1109/JIOT.2019.2921879
Kurniadi, K., Ibrahim, S., Badruzzaman, B., & Purnama, H. (2022). Small and Medium Enterprises Business Model in Indonesia. Journal of Economics and Business, 5(3). https://doi.org/10.31014/aior.1992.05.03.444
Li, L., Hsu, C., Mao, J., & Zhang, W. (2022). Contextualising digital innovation in today’s China: Local practices and global contributions. Information Systems Journal, 32(3), 623–629. https://doi.org/10.1111/isj.12379
Li, X. (2020). Cultural creative economy and urban competitiveness: How one matters to the other. Journal of Urban Affairs, 42(8), 1164–1179. https://doi.org/10.1080/07352166.2020.1727293
Liang, S., & Wang, Q. (2020). Cultural and Creative Industries and Urban (Re)Development in China. Journal of Planning Literature, 35(1), 54–70. https://doi.org/10.1177/0885412219898290
Liu, Z. (2021). The Impact of Government Policy on Macro Dynamic Innovation of the Creative Industries: Studies of the UK’s and China’s Animation Sectors. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 168. https://doi.org/10.3390/joitmc7030168
Mediastika, C. E., Sudarsono, A. S., Utami, S. S., Ariyanto, Y., Setiawan, T., & Yanti, R. J. (2023). The puzzling sound mark of a cultural and tourism city: The case of Yogyakarta. The Journal of the Acoustical Society of America, 154(4_supplement), A230–A230. https://doi.org/10.1121/10.0023371
Na, Y. K., Kang, S., & Jeong, H. Y. (2019). The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage. Sustainability, 11(3), 729. https://doi.org/10.3390/su11030729
Nandiwardhana, A. P., Cudjoe, D., & Permana, D. (2022). A sustainable development assessment of Indonesia’s state banks financing the industrial and non-industrial sector. Journal of Sustainable Finance & Investment, 12(3), 894–911. https://doi.org/10.1080/20430795.2020.1809964
Ogbodo, E. U., Abu-Mahfouz, A. M., & Kurien, A. M. (2022). A Survey on 5G and LPWAN-IoT for Improved Smart Cities and Remote Area Applications: From the Aspect of Architecture and Security. Sensors, 22(16), 6313. https://doi.org/10.3390/s22166313
Pacheco Pardo, R., & Klingler-Vidra, R. (2019). The Entrepreneurial Developmental State: What is the Perceived Impact of South Korea’s Creative Economy Action Plan on Entrepreneurial Activity? Asian Studies Review, 43(2), 313–331. https://doi.org/10.1080/10357823.2019.1589418
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T., Mulrow, C. D., Shamseer, L., & Moher, D. (2020). Mapping of reporting guidance for systematic reviews and meta-analyses generated a comprehensive item bank for future reporting guidelines. Journal of Clinical Epidemiology, 118, 60–68. https://doi.org/10.1016/j.jclinepi.2019.11.010
Pickel-Chevalier, S., Bendesa, I. K. G., & Darma Putra, I. N. (2021). The integrated touristic villages: an Indonesian model of sustainable tourism? Tourism Geographies, 23(3), 623–647. https://doi.org/10.1080/14616688.2019.1600006
Pramana, S., Paramartha, D. Y., Ermawan, G. Y., Deli, N. F., & Srimulyani, W. (2022). Impact of COVID-19 pandemic on tourism in Indonesia. Current Issues in Tourism, 25(15), 2422–2442. https://doi.org/10.1080/13683500.2021.1968803
R. Lita Meuthia Meuthia, R. F. F. (2020). Enhancing small and medium enterprises performance through innovation in Indonesia. Journal of Hospitality and Tourism Technology, 11, 155–176. https://doi.org/10.1108/jhtt-11-2017-0124
Rahman, A. U., Fourati, F., Ngo, K.-H., Jindal, A., & Alouini, M.-S. (2022). Network Graph Generation Through Adaptive Clustering and Infection Dynamics: A Step Toward Global Connectivity. IEEE Communications Letters, 26(4), 783–787. https://doi.org/10.1109/LCOMM.2022.3146606
Rahman, M. A., Rashid, M. M., Hossain, M. S., Hassanain, E., Alhamid, M. F., & Guizani, M. (2019). Blockchain and IoT-Based Cognitive Edge Framework for Sharing Economy Services in a Smart City. IEEE Access, 7, 18611–18621. https://doi.org/10.1109/ACCESS.2019.2896065
Rauter, R., Globocnik, D., Perl-Vorbach, E., & Baumgartner, R. J. (2019). Open innovation and its effects on economic and sustainability innovation performance. Journal of Innovation & Knowledge, 4(4), 226–233. https://doi.org/10.1016/j.jik.2018.03.004
Ridwan Maksum, I., Yayuk Sri Rahayu, A., & Kusumawardhani, D. (2020). A Social Enterprise Approach to Empowering Micro, Small and Medium Enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 50. https://doi.org/10.3390/joitmc6030050
Sanchez-Arias, R., Jaimes, L. G., Taj, S., & Habib, M. S. (2023). Understanding the State of Broadband Connectivity: An Analysis of Speedtests and Emerging Technologies. IEEE Access, 11, 101580–101603. https://doi.org/10.1109/ACCESS.2023.3313231
Santoro, G., Bresciani, S., & Papa, A. (2020). Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity. Technovation, 92–93, 102040. https://doi.org/10.1016/j.technovation.2018.06.003
Sawng, Y., Kim, P., & Park, J. (2021). ICT investment and GDP growth: Causality analysis for the case of Korea. Telecommunications Policy, 45(7), 102157. https://doi.org/10.1016/j.telpol.2021.102157
Setyowati, A. B. (2021). Is it mitigating inequality with emissions? Exploring energy justice and financing transitions to low carbon energy in Indonesia. Energy Research & Social Science, 71, 101817. https://doi.org/10.1016/j.erss.2020.101817
Shi, Y., Zhang, T., & Jiang, Y. (2023). Digital Economy, Technological Innovation and Urban Resilience. Sustainability, 15(12), 9250. https://doi.org/10.3390/su15129250
Statsenko, L., & Corral de Zubielqui, G. (2020). Customer collaboration, service firms’ diversification and innovation performance. Industrial Marketing Management, 85, 180–196. https://doi.org/10.1016/j.indmarman.2019.09.013
Suharyanto, I., van Aalst, I., van Liempt, I., & Zoomers, A. (2023). More than jedug-jedug : dynamics of discontent with tourist activity in Prawirotaman, Yogyakarta. Tourism Geographies, 25(1), 177–197. https://doi.org/10.1080/14616688.2020.1861080
Sukmayadi, Y., & Masunah, J. (2020). Organising Bandung Isola Performing Arts Festival (BIPAF) As A Market of Innovative Arts in Indonesia. Harmonia: Journal of Arts Research and Education, 20(1), 47–57. https://doi.org/10.15294/harmonia.v20i1.24380
Unceta, A., Barandiaran, X., & Lakidain, A. (2021). The digitalisation of Creative Industries Fostered by Collaborative Governance: Public Innovation Labs in Gipuzkoa. Sustainability, 13(5), 2568. https://doi.org/10.3390/su13052568
Van Laar, E., Van Deursen, A. J. A. M., Van Dijk, J. A. G. M., & De Haan, J. (2019). Twenty-first-century digital skills for the creative industries workforce: Perspectives from industry experts. First Monday, 24. https://doi.org/10.5210/fm.v24i1.9476
Wang, K., Zhao, Y., Gangadhari, R. K., & Li, Z. (2021). We are analysing the Adoption Challenges of the Internet of Things (IoT) and Artificial Intelligence (AI) for Smart Cities in China. Sustainability, 13(19), 10983. https://doi.org/10.3390/su131910983
Westoby, R., Gardiner, S., Carter, R. W. (Bill), & Scott, N. (2021). Sustainable livelihoods from tourism in the “10 New Balis” in Indonesia. Asia Pacific Journal of Tourism Research, 26(6), 702–716. https://doi.org/10.1080/10941665.2021.1908386
Wijaya, S. (2019). Indonesian food culture mapping: a starter contribution to promote Indonesian culinary tourism. Journal of Ethnic Foods, 6(1), 9. https://doi.org/10.1186/s42779-019-0009-3
Wiryawan, B. A., & Otchia, C. (2022). The legacy of the reformasi: the role of local government spending on industrial development in a decentralised Indonesia. Journal of Economic Structures, 11(1), 3. https://doi.org/10.1186/s40008-022-00262-y
Yao, J., Li, H., Shang, D., & Ding, L. (2021). Evolution of the Industrial Innovation Ecosystem of Resource-Based Cities (RBCs): A Case Study of Shanxi Province, China. Sustainability, 13(20), 11350. https://doi.org/10.3390/su132011350
Yoon, H. (2019). Do higher skills result in better jobs? The case of the Korean animation industry. Geoforum, 99, 267–277. https://doi.org/10.1016/j.geoforum.2018.08.013
Zhang, X., Duan, K., Zhao, H., Zhao, Y., Wang, X., & de Pablos, P. O. (2020). Can cooperation drive the success of suppliers in B2B crowdsourcing innovation projects? A large-scale data perspective. Industrial Marketing Management, 90, 570–580. https://doi.org/10.1016/j.indmarman.2019.09.011